The Nikkei 225 Constituents
The 225 components of the Nikkei Index as at February, 2017 include 11 food companies, 10 automotive companies, 5 textiles and apparel companies, 5 precision instrument companies, 3 pulp and paper companies, 3 manufacturing companies, 17 chemical companies, 2 fishery companies, one mining company, 9 construction companies, 7 trading companies, 8 pharmaceutical companies, 8 retail companies, 2 oil and coal product companies, 11 banks, 2 rubber product companies, 8 glass and ceramic companies, 3 securities companies, 6 steel product companies, 6 insurance companies, 12 non ferrous metal companies, 5 real estate, 1 other financial service company, 8 railway companies, 16 machinery companies, 2 other land transport companies, 3 marine transport companies, 1 air transport company, 1 warehousing company, 28 electrical machinery companies, 6 communication companies, 3 electrical power companies, 2 gas companies, 9 services companies and 2 shipbuilding companies.2
Due to the large number of components, the Nikkei Index can be used as a reliable indicator of the state of the Japanese economy and as a measure of investor sentiment.
Nikkei 225 Selection Criteria
Components could be changed during an annual review called a Periodic Review, or upon delisting of a component company through an Extraordinary Replacement. The constituents of the Nikkei are reviewed on an annual basis every autumn and if a change is decided, it normally takes place in October.
The selection criteria is based on two main factors:
Additionally, to be considered for selection, the constituent must be listed on the Tokyo Stock Exchange First Section and must be an ordinary share.
The top 5 performing stocks in the Nikkei Index:
1. T&D with a price of 1924, an increase of 5.02%
2. Alps Electric with a price of 3490, an increase of 3.87%
3. Sony with a price of 3661, an increase of 3.65%
4. Nomura with a price of 767, an increase 3.58%
5. All Nippon Airways with a price of 348.90, an increase of 3.56% 5
*as at time of writing: April 2017
How Is The Nikkei 225 Calculated
The Nikkei Index is price weighted, which means that each stock proportionately affects the value of the index according to its price.
The index value is calculated by adding up the prices of the components and dividing them by the total number of components, in this case, 225.
How To Trade The Nikkei 225
While it is not possible to trade directly on the Nikkei Index, investors can make use of either Futures, Options, Contract for Difference (CFDs) or by charting the market.
Trading Nikkei 225 With A CFD Broker
CFDs are tradable instruments that represent the difference between when a contract is entered and when it is exited, this allows for gains or losses when the underlying index (in this case, the Nikkei Index) moves.
The advantages of trading the Nikkei Index as a CFD include, a higher leverage as CFDs traditionally have lower margin requirements than other methods of trade, access to a variety of markets on the same platform, a variety of trading options and little or no brokerage fees.
This means that a trader would only require an account size 65.62 to purchase one contract of the Nikkei 225 Index. (19,686/300=65.62)
It is important to note however that leverage can go both ways and amplify both losses and profits.
In summary, trading the Nikkei 225 as a CFD has one the lowest capital requirements for a trader.
BrokerNotes.co 2023 Overall Rankings
To recap, here are our top forex brokers for 2023, sorted by Overall ranking.
At BrokerNotes.co, our data-driven reviews of online brokers are based on our own extensive testing of each broker's products and services as well as the qualified observations of our expert editorial team. In conjunction with our sister site, ForexBrokers.com, we’ve published well over 100,000 words of research and collected thousands of data points across hundreds of variables. Our in-depth trading guides are created with the same rigorous, data-driven approach.
Our proprietary Trust Score rating system tracks data from over 100 regulatory jurisdictions to help forex traders understand the regulatory status of their forex broker and choose a broker that they can trust.
Our editorial team is led by Steven Hatzakis, an industry veteran with decades of experience and a deep understanding of the forex market. Our team conducts thorough testing on a wide range of brokers, platforms, products, technologies, third-party trading tools, and mobile apps. We also test for the availability of high-quality educational content, actionable market research resources, and the accessibility and capabilities of mobile platforms. All of our ratings and rankings are based on the collection and validation of thousands of data points and our in-depth product testing.
Part of our testing process involves in-depth research into commissions and fees. We dive into each broker’s trading costs, such as VIP rebates, inactivity fees, custody fees, bid/ask spreads (we always strive to determine the average spreads for each broker to better serve our readers), and a variety of other fee-based data points.
All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running the latest version of macOS to test trading on the go.
When testing mobile apps or mobile products, we test on both Apple and Android devices. For Apple, we test with the iPhone XS running iOS 16, and for Android we use the Samsung Galaxy S9+ and Samsung Galaxy S20 Ultra devices running Android OS 13.
All of the content on BrokerNotes.co is researched, fact-checked, and edited by members of our editorial team. Our ratings and rankings are driven by our independent data collection. We may use generative AI tools to assist in some of the rote aspects of our content production processes, but the substance of our content, as well as our opinions and evaluations are based on our extensive research and product testing. Read our Generative AI policy to learn more.
Our rigorous data validation process provides our readers with quality data they can trust. Click here to learn more about how we test.
Forex Risk Disclaimer
There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses. Learn more about foreign exchange risk.
About the Editorial Team